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Clan culture and family ownership concentration: Evidence from China

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  • Cheng, Jiameng
  • Dai, Yanke
  • Lin, Shu
  • Ye, Haichun

Abstract

This study explores a cultural determinant of family ownership concentration of a corporate. Using hand-collected Chinese genealogy information and a panel of Chinese listed family firms, we find robust evidence that clan culture influences are associated with a significantly higher family ownership concentration. By taking advantage of firm owner birthplace information, we are able to separate the impact of inherited clan culture from that of external environmental factors. To further establish causality, we also employ an instrumental variable (IV) regression strategy and explore the underlying mechanisms.

Suggested Citation

  • Cheng, Jiameng & Dai, Yanke & Lin, Shu & Ye, Haichun, 2021. "Clan culture and family ownership concentration: Evidence from China," China Economic Review, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:chieco:v:70:y:2021:i:c:s1043951x21001103
    DOI: 10.1016/j.chieco.2021.101692
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    Cited by:

    1. Chen, Na & Yang, Huan, 2024. "From rural to urban: Clan, urbanization and trust," China Economic Review, Elsevier, vol. 85(C).
    2. Tang, Can & Zhao, Zhong, 2023. "Informal institution meets child development: Clan culture and child labor in China," Journal of Comparative Economics, Elsevier, vol. 51(1), pages 277-294.
    3. Yongjun Tang & Qi Li & Fen Zhou & Mingjia Sun, 2024. "Does Clan Culture Promote Corporate Natural Resource Disclosure? Evidence from Chinese Natural Resource-Based Listed Companies," Journal of Business Ethics, Springer, vol. 192(1), pages 167-190, June.
    4. Chenchen Fan & Mingming Jiang & Bo Zhang, 2024. "Beyond cultural norms: how does historical rice farming affect modern firms' family control?," Economica, London School of Economics and Political Science, vol. 91(363), pages 770-808, July.
    5. Fang Xu & Xiaoru Zhang & Di Zhou, 2023. "Do rural clan‐based networks reduce the risk of a return to poverty? Evidence from China," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(5), pages 856-883, July.
    6. Chen, Jing & Zhao, Deqiang & Liu, Xinghe & Xu, Cheng & Liu, Luyao, 2022. "Home Sweet Home: Do Local CEOs Curb Stock Price Crash Risk?," Finance Research Letters, Elsevier, vol. 50(C).
    7. Tang, Can & Zhao, Zhong, 2022. "Informal institution meets child development," MERIT Working Papers 2022-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Fan, Haichao & Li, Chang & Xue, Chang & Yu, Miaojie, 2023. "Clan culture and patterns of industrial specialization in China," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 457-478.
    9. Wang, Xiangnan & She, Kexin & Bian, Wenlong, 2024. "Clan culture and participation in FinTech-based risk sharing," Pacific-Basin Finance Journal, Elsevier, vol. 83(C).
    10. Huang, Liangxiong & Ma, Minghui & Wang, Xianbin, 2022. "Clan culture and risk-taking of Chinese enterprises," China Economic Review, Elsevier, vol. 72(C).
    11. Gan, Tian & Zhang, Mingxin & Zhang, Zhiqiang, 2023. "The impact of digital government policy on entrepreneurial activity in China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 479-496.
    12. Ma, Hongqi & Zou, Jingxian & Qin, Cong, 2024. "Environmental regulations implemented by local officials in China: Is there a hometown effect?," Energy Economics, Elsevier, vol. 130(C).
    13. Liu, Xinghe & Zhong, Weifeng & Chen, Jing, 2023. "Stay home, stay safe: CEO hometown identity and default risk," Finance Research Letters, Elsevier, vol. 57(C).

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    More about this item

    Keywords

    Corporate ownership structure; Family ownership; Clan culture; China;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • Z1 - Other Special Topics - - Cultural Economics

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